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Can I select who we offer a 401(K) to based on employment class?

My company is thinking of offering a 401(k) plan but we will likely have too few participants/contributions from our Class III earners (the majority of our workforce). Is it possible to only offer a 401(k) to our Class I and II employees, and offer an HSA to our Class III employees? Class III employees have a HDHP

Thank you!

Jul 31, 2017 by Thrift Books in  |  Flag
1 Answer  |  1 Follower
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3 votes

Hello,

You are not permitted to offer plans that provide unequal benefits to certain classes of employees. You could establish a master 401k plan for all employees and perhaps offer highly comped executives a defined benefit pension option which could be more restrictive. We work with companies just like yours and will gladly offer a free consultation to review your options.

Best regards, Curtis Hollowell, CPFA Managing Partner Redmount Capital Partners, LLC 949-230-2396

Comment   |  Flag   |  Aug 08, 2017

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